NZ stocks: Telecom slumps to new low

12.00 pm

Telecom's slump to new lows for the year dragged the sharemarket down again in early trading today.

Telecom fell 6c to 474, its lowest level since November but later recovered a cent to 475. It fell 9c yesterday.

Analysts said they are increasingly concerned that Telecom is shaping up as yet another New Zealand company which has had its fingers burnt through its investment in Australia. The company told analysts this week it was not yet getting an economic return on its AAPT investment.

The benchmark NZSE-40 capital index was down 4.47 points at 2058.94 on very light volume worth just over $12 million.

Trade in Telecom was worth $4.6 million.

Number two stock Carter Holt Harvey fell 2c to 196, adding to the 2c it lost yesterday.

Yesterday's standout performer, market newcomer Briscoe Group, added to yesterday's 11c gain in the wake of its better than forecast profit result.

Initially down 2c, it reversed that and was up 8c on yesterday's close at a new all-time high of 191. Its year profit of $17.5 million was well ahead of the $15.1 million forecast in its prospectus in November. The company declared a dividend of 3.25 cents per share, also nearly a third better than the forecast.

Restaurant Brands continued its fine run after announcing a foray into Australia. It put on 6c to 211 to add to yesterday's 4c gain.

Others to gain included: Blis, 3c to 57, Goodman Fielder, 7c to 187, Michael Hill, 6c to 505, Sky City, 7c to 580, Steel & Tube, 5c to 305, Tranz Rail, 4c to 428 and United Networks, 5c to 820.

Contact Energy fell 1c to 390 and Fletcher Building gained 1c to 296.

Air New Zealand was steady on 33. UBS Warburg has taken a contrary view from other brokers and issued a buy recommendation on the stock. The company is mulling morphing into a discount carrier.

There were 26 rises and 25 falls among the 103 stocks traded.

- NZPA